School Official May Have Broken Law Panther Valley Audit Calls Receipt Of Checks Improper

March 12, 1988|by ROBERT FLEXER, The Morning Call

A member of the Panther Valley School Board may have violated the Public School Code and the state Ethics Act when two commission checks from an insurance company were received, according to state Auditor General Don Bailey.

Although a press release from Bailey's office did not name the board member, Bailey's press secretary, Ben Livingood, in December identified him as Edward Shubeck of Lansford. Shubeck was told to resign by the district's lawyer in December, but he declined to leave his post and said he would have no comment on the situation.

Livingood said an investigation was started after an anonymous complaint was received.

Bailey discusses the alleged violation in an audit report of district records from the 1985 and 1986 fiscal years.

The School Board awarded a $4,985 student accident insurance contract to Reliance Standard Life on Aug. 15, 1984, Bailey said. The company underwrote the contract for Insurance Associates Ltd. of Allentown.

One year later, the board voted to renew the contract with the Allentown company at a cost of $5,539. The board member in question voted in favor of the contract on both occasions, and subsequently received two commission checks totaling $472 from Insurance Associates Inc., Bailey said.

"It is my opinion that the board member's personal financial gain from the district contract violated provisions of the School Code and the Ethics Act," Bailey said. "A detailed report of our findings have been forwarded to the state Ethics Commission, the School Board president and district solicitor for review and appropriate action."

The School Board took no action on the matter except to turn over findings to the Carbon County district attorney's office. District Attorney Richard Webb said yesterday that his office is investigating the case.

The matter came to light at a Dec. 17 School Board meeting when McCready recommended that Shubeck resign. Shubeck attended the meeting but left during an executive session.